Home buyers wait years, but lots are still empty

August 17, 2007|By Kumari Kelly, Sentinel Staff Writer

Minh-H-Nguyen and her husband, Ha Ngoc Nguyen, took out a loan for a down payment on a "dream home" in Lake County two years ago after being dazzled by pictures of a sprawling house with a screened pool.

"The dream has not come true," said Minh-H-Nguyen, 38, frowning.

Like hundreds of others, the Ocoee couple haven't seen their home built. At least 10 of them have filed lawsuits against developer Platinum Properties of Central Florida, which took the Nguyens' $35,190 deposit but has not delivered on their $351,000 home in Millbrook Manor.

FOR THE RECORD - ********** CORRECTION OR CLARIFICATION PUBLISHED AUGUST 18, 2007 **********The continuation of an article on Page A17 on Friday about Platinum Properties of Central Florida's failure to build homes for which it accepted deposits left unclear the disposition of bankruptcies filed by Platinum Properties Chief Executive Officer David N. Weiker Sr., 55, of Casselberry. Of the three bankruptcies for which Weiker filed before forming Platinum, the first was voluntarily terminated; the second was dismissed by the court; and a third was discharged by the court.******************************************************************************

In fact, the company has taken in more than $22 million in deposits on at least 400 contracts on homes in Lake and Polk counties, according to court filings. The Florida Department of Law Enforcement is investigating the dealings. No one has been charged.

Platinum's chief executive officer, David N. Weiker Sr., says he welcomes FDLE to look at all the company's financial records and has volunteered to be interviewed by investigators.

"If you're going to run off with the money, you're going to run off with the money," he said Thursday in a telephone interview. "You wouldn't go through the permitting process and spending money on developing the land. The accusations don't make sense."

Weiker says his companies have contracts to build 580 homes in Winslow Estates in northeast Polk County, Citrus Highlands Phase II in south Lake County and Millbrook Manor, located in the Four Corners area where Orange, Lake, Polk and Osceola counties converge.

But construction is at a standstill.

Weiker, 55, of Casselberry, who started Platinum in 2004 with two partners soon after filing his third personal bankruptcy, promises the homes will be built and says he's confident another round of financing will come through to save the properties from foreclosure, proceedings that already have begun.

"We have 580 houses to get built, and we're going to get it done," Weiker said.

Construction on the home sites has been held up by gopher tortoises, lawsuits, water problems and fire-hydrant issues, among other things.

Homeowners have turned to each other, sharing stories on online bulletin boards. Some put down deposits of more than $67,300. Like the Nguyens, who are Vietnamese, many buyers are grappling with real-estate complexities. Others are not U.S. citizens and live in the United Kingdom.

Kath Robjohns, 56, is one of them. She paid $48,790 toward a home and is still waiting.

"It's put me on a mission to tell people there are risks to buying property in Florida -- and telling people don't sign these contracts with builders," Robjohns said.

Said Ha Ngoc Nguyen, 43, of the couple's deposit paid in April 2005: "I want to get my money back to pay bills." Parents of two children, 7 and 11, they work 11-hour days -- seven days a week -- in their Orlando nail salon.

In their purchase contract, Platinum agreed to complete construction within two years.

Thursday, Weiker wouldn't say whether he would give back any of the deposit money. "I'm not trying to avoid the question," he said. "It's too complicated. Once we get the financing set, we can address that issue."

A former president of the company has accused Weiker of using deposit money inappropriately -- to buy a spa for his home, invest in other companies, buy property in Georgia, use $178,000 to pay off his home's mortgage and pay a former business associate $150,000 for some of his stock shares, among other things.

The accusations are made in a 2006 lawsuit filed in Lake County court against Platinum by Lawrence Maloney, a former president and board member from Orlando who was removed in October 2005.

Weiker said Thursday those allegations weren't true and that Maloney is now working with him again as a partner. Maloney could not be reached for comment.

Troubles started early

Even before the court filings, Platinum had trouble at its sites with county and state wildlife officials as early as 2005.

Platinum officials had applied for building-plan approval for Millbrook in 2005 but ran into delays when they didn't have proper fire hydrants planned.

In July, Weiker pleaded no contest to criminal environmental violations after the company cleared land at Citrus Highlands and Millbrook Manor without first paying for a permit to destroy threatened gopher tortoises and their eggs. A plea agreement in Lake County court requires him to pay $5,000 to a state conservation fund.

Buyers' hopes dwindle

As home buyers' hopes of retrieving their money dwindle, the mortgage holders on the three sites are making the same effort. And Boykin Construction, which estimates that it has done about $1.2 million in site work, has filed a lien against the Lake County property.

Such moves could affect home buyers such as the Nguyens, who have no legal claim to the land.

Weiker said his companies are not actively selling homes now. And state wildlife officials say that until the tortoise permit at Millbrook is paid, construction cannot begin, officials said. Weiker said he is reapplying for the permit.

Said Robjohns: "It's devastating. To me, the most important thing after this is to open other people's eyes. I wouldn't want another person to go through this."